Report: CEO Akerson buys 10,000 more shares of GM stock amidst fears of recession
 

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The past couple of weeks have been incredibly difficult for the stock market, with some of the largest drops in the history of the Dow. And even though Ford and General Motors recently posted massive second quarter profits, domestic auto shares are indeed taking a beating. In fact, GM stock has dropped by 25 percent in only a few weeks, down to $23.92 at closing on Wednesday.

So, does a massive stock drop mean that it's time to cut and run? Not for GM CEO Dan Akerson. The Detroit Free Press reports that the chief executive picked up another 10,000 shares of GM stock at $25.05 per share. Akerson now reportedly owns 103,600 shares, which would translate into about $2.47 million worth of GM stock.

We're guessing Akerson is buying GM stock now to show investors that he believes in the future of the company, but some analysts feel the stock is a good buy on its own. Bloomberg analysts feel GM stock will trade at about $42 per share in 12 months. Goldman Sachs seems to agree, predicting that the stock could hit $40 in the next year. But while the future looks good at GM, analysts warn that a sustained recession could further drop auto shares over the next year.CEO Akerson buys 10,000 more shares of GM stock amidst fears of recession originally appeared on Autoblog 5.0 on Thu, 11 Aug 2011 11:28:00 EST. Please see our terms for use of feeds.


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